What data back-up and disaster recovery procedures must a The Standardx franchisee maintain?
The_Standardx Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) Data Back-Up & Disaster Recovery. Franchisee will maintain in accordance with this Agreement and the System Standards: (i) appropriate data back-up and storage procedures to minimize any harm occurring from loss or corruption of data whatever the cause and (ii) an appropriate disaster recovery and business continuance plan to be activated in response to a technology crisis or system downtime.
Source: Item 18 — OTHER INCOME (LOSS), NET (FDD pages 187–399)
What This Means (2025 FDD)
According to The Standardx's 2025 Franchise Disclosure Document, franchisees must maintain appropriate data back-up and storage procedures to minimize harm from data loss or corruption, regardless of the cause. Additionally, franchisees must have a disaster recovery and business continuity plan to activate in response to a technology crisis or system downtime. These procedures must align with the franchise agreement and the System Standards set by The Standardx.
In practical terms, this means a prospective The Standardx franchisee needs to invest in robust IT infrastructure and protocols. This includes not only the hardware and software for data storage and backup but also the development and documentation of a comprehensive disaster recovery plan. The plan should detail steps to be taken in various crisis scenarios to ensure business continuity.
The Standardx franchisee should budget for these IT requirements and understand the ongoing costs of maintaining these systems. It is important to clarify with The Standardx what specific standards and technologies are required or recommended to ensure compliance and effective data protection. Failure to comply with these standards could result in operational disruptions and potential breaches of the franchise agreement.
It is common in the franchise industry for franchisors to set standards for data backup and disaster recovery to protect brand reputation and ensure consistent service delivery across all locations. The Standardx's requirements are in line with this practice, emphasizing the importance of data security and business continuity in the hospitality sector.